AT&T Enters Smart Home Battle With ‘Digital Life’ Packages

[1]On Friday, AT&T (NYSE:T[2]) will debut a new range of services to bring digital control to customers’ homes[3].

The telecommunications giant will offer systems that feature home security monitoring, interior climate control and remote system control via mobile devices. Dubbed “Digital Life,” the service packages will start in 15 major cities, including San Francisco, Los Angeles, Miami and Chicago, the Associated Press notes.

Basic home security system services start at $40 a month, after an installation fee. Additional services, including wireless cameras and remote control of locks and other home systems, will increase both the installation and monthly fees. AT&T security systems are monitored from centers based in Atlanta and Dallas.

The home security and automation market already has a number of players, including ADT (NYSE:ADT[4]). However, AT&T is hoping to leverage its nationwide reach and internally-developed technology to open a beachhead in the market. AT&T announced its intention to enter the home automation market last year[5].

With growth from wireless services beginning to slow from market saturation, AT&T is looking for new revenue channels. An AT&T official noted that only 20% of U.S. homes have security systems installed and called the home automation market a “billion dollar opportunity” for the company.

In January, Microsoft (NASDAQ:MSFT[6]) purchased home automation start-up R2 Studios[7], which developed technology to connect mobile devices to home systems.

Shares of AT&T were flat in Friday morning trading, while ADT fell about 1%.